VIVENDI'S UMG ACQUIRES
BMG SONGS

Vivendi and Universal Music Group announced today that they have signed a "definitive agreement" with Bertelsmann for the purchase of BMG Music Publishing Group for a total consideration (in enterprise value) of EUR 1.63 billion, which is approximately $2.03 billion in U.S. dollars.

The transaction has been approved by Vivendi's Management Board and the Supervisory Board, subject to the regulatory approvals of the competition authorities in the relevant countries.

Subject to those approvals, BMG Music Publishing will be integrated within UMG, which will then become the world leader in music publishing, with approximately 25-26% of the overall market, catapulting it over EMI Music Publishing at around 21%. Both UMG and BMG Music Publishing had between 12.5% and 13% of the world market.

BMG Music Publishing's catalog includes over one million copyrights and a roster of chart-topping artists like Coldplay, Justin Timberlake, Maroon 5, Christina Aguilera, R Kelly and Juan Gabriel, among numerous others, from The Scorpions, Barry Manilow and Gilbert Becaud, to such seminal classical artists as Puccini and Ravel.

Vivendi CEO/Chairman Jean-Bernard Lévy took some time from watching the Jerry Lewis MDS telethon to boast: "The acquisition of BMG Music Publishing is a unique opportunity to grow our music publishing business and enhance the value of Universal Music Group at a time when the music market is improving, supported by technological innovations and digital sales. It is by developing and strengthening our businesses, in a rigorous and targeted manner, as we already did with our television, video games and telecommunications activities, that we create value for Vivendi's shareholders."

Said UMG Chairman/CEO Doug Morris, a member of Vivendi Management Board: "This is an historic acquisition which will further diversify and expand our portfolio of music assets into such key areas as production music, classical and Christian music. As a result, UMG will not only be even better positioned to fully capitalize on the many new and exciting opportunities in the current marketplace, but able to better serve our artists, songwriters and business partners. Does anyone have change for 1.63 billion Euros, by the way?"